Relocating to Dubai as an expatriate entrepreneur comes with distinct opportunities and challenges, especially when it involves starting or expanding a business. Moving to a city like Dubai comes with meticulous planning for a dynamic business landscape. Relocating to Dubai with a business license is a crucial step to establishing a legal presence, operating smoothly, and maximizing the benefits of living and working in one of the world’s most dynamic cities.
This blog will guide you through the essentials of expat relocation Dubai with business license.
Let’s get started –
Why Relocate to Dubai as an Expat Entrepreneur?
Dubai has established itself as a major international business hub that draws successful SMEs, startups, and investors from all over the world. For expats who wish to reside and expand their enterprises in a dynamic setting, its prime geographic position, investor-friendly legislation, tax benefits, and top-notch infrastructure make it the perfect choice.
The absence of personal income tax and the relatively low tax burden on businesses are two key factors that drive expatriates to opt for relocation to the UAE.
- Dubai offers access to markets in the GCC and the larger Middle East
- Outstanding logistics and transportation facilities for companies willing to shift businesses to Dubai
- The availability of top-notch free zones suited to different industries
- Access to a global, international lifestyle with excellent safety standards
- For those with a license, opening corporate bank accounts and accessing funds is hassle-free
- The favorable tax makes Dubai expat-friendly.
- The crime rates in Dubai are exceptionally low. It is considered among the safest cities in the world. This attracts expats in Dubai to start a new business and relocate.
- A robust regulatory environment that encourages international investment
What To Expect After Relocation to Dubai?
Its central location between Asia and Europe makes it a hub for expats. 85% of the city’s expats are from around the world, and 71% originate from Asia. Moreover, Dubai for expats is known for having a very welcoming culture. Approximately 12% of Dubai’s GDP is based on tourism and the businesses of entrepreneurs moving to Dubai. So, it welcomes those who wish to relocate and settle in the city.
Understanding Business Licensing in Dubai
A business license is what grants an individual, expat or national, to conduct businesses openly in the Emirates. With the help of a license, one can carry on commercial, professional, or any kind of industrial services in Dubai. It is compulsory to have a license and similar work permits to start any business operations.
In Dubai, there are three primary categories of company licenses:
- Commercial License: To purchase, sell, and trade goods and offering unlimited business opportunities.
- Professional License: For professionals, craftspeople, and service providers.
- Industrial License: For production and business operations.
- E-commerce License: For conducting any business online.
Usually, licensing is granted by the relevant free zone authorities if you incorporate within a free zone, or the Department of Economic Development (DED) for mainland businesses.
Steps for Expat Relocation to Dubai With a Business License
Below, we have discussed how the process of expat relocation Dubai with business license goes. It’s simple and hassle-free. Just make sure you’re following the steps given below:
Choosing the Right Jurisdiction
The first decision for business formation starts with choosing from the different business structures present in Dubai. The three main jurisdictions for business relocations are –
Mainland Companies
Companies that operate outside of free zones must have a Department of Economic Development (DED) mainland license. For many activities, a local Emirati sponsor living in Dubai or a service agent is needed.
Free Zone Companies
Dubai provides a number of free zones, including Dubai Silicon Oasis, Dubai Internet City, and Dubai Multi Commodities Centre (DMCC), which provide sector-specific advantages, simplified licensing processes, and 100% foreign ownership.
Offshore Companies
Offshore licenses, which offer tax planning and asset protection advantages without requiring a physical office in Dubai, are mainly intended for holding corporations or entities that conduct business outside of the United Arab Emirates.
The Legal Requirements for Expats Relocating With a Business License In Dubai
Entry Permit:
It’s essential to obtain an entry permit for expat relocation Dubai with business license. The first step is for the expats moving to Dubai to get an entry permit. The requirements vary based on nationality:
- Apply online for a UAE entry visa
- Should have a valid passport with at least 3 months’ validity
- Requires a valid passport and a residency permit from a GCC country.
Non-GCC Nationals –
- Requires a valid passport with at least 6 months’ validity from the date of entry
- Some are eligible to get a visa on arrival
- Others will have to arrange for an entry visa before arrival
Other Entry Permit Requirements –
- Tourist Visa: Five-year, multiple-entry visa that permits visits lasting up to ninety days. requires evidence of a current health insurance policy and a $4,000* bank balance over the previous six months.
- Visit Visa: 30–90 days, sponsored by a family member or UAE resident.
- Transit Visa: For visitors passing through Dubai for brief stays of 48 to 96 hours.
- Work Entry Permit: Those who have received a job offer from a company established in Dubai are granted a work entry permit.
Acquiring a Business License
Another legal requirement for expats to relocate to Dubai is having a valid business license. To get a license, one must adhere to the following procedural requirements:
- Company Registration: Registering the company with a valid and appropriate business name.
- Local Sponsor or Partner: Many mainland commercial operations necessitate a local service agent with professional licenses or a local Emirati partner holding 51 percent of the shares.
- Office Space: Especially for mainland companies, one needs a valid office space.
- Initial Approval and Trade Name Registration: You need to register your trade name and wait for approval from DED.
Business Setup and Residency Visa
The good news in Dubai is that you are eligible for residency visa services with a simple company formation. Here’s how:
- Investor Visa: Business license holders who invest in Dubai-based enterprises are eligible for a three-year investor visa.
- Visa for Partners: For international partners who own stock in mainland or free zone businesses.
- Visa for Employees: Additionally, business owners are able to sponsor their own domestic servants, family members, and employees.
Legal stay, access to public services, and unrestricted travel within and outside of the United Arab Emirates are guaranteed when a residency visa is obtained in conjunction with a valid business license. It allows you to legally work in the Emirates and ensure a smooth transition to Dubai.
Steps for Expat Relocation To Dubai With a Business License
Here’s a complete guide to making the move to Dubai and establishing a business here –
Research And Choose Jurisdiction
When relocating your business, the first step is to choose between mainland, free zones, and offshore companies. This will mainly depend on your business activities, ownership needs, and visa preferences.
Business Activities
When relocating a business, carefully assess your business needs and requirements and choose activities accordingly. Dubai is known to offer a diversified range of licenses to establish a friendly and flexible business environment. Your license will be based on whether you are conducting e-commerce business, commercial business, professional, or industrial activities.
Application for a License and Company Registration
Passports, business plans, lease agreements, pertinent approvals, and other required documents should all be submitted to DED or the appropriate free zone authority.
Establishing a Safe Office Space
When planning to move to Dubai, make sure that your office space satisfies licensing standards or that you have a legal rental arrangement.
Get a Visa for Residency
After a license is issued, apply for an investor or partner visa; registration for an Emirates ID and medical exams come next. Make sure to follow the visa requirements procedure carefully.
Logistics of Relocation
Plan your relocation, taking into account local banking, housing, healthcare, employment visa, and education, if applicable. Make your transition smooth by having an idea about everything.
Observance and Renewals
By following UAE rules and renewing your trade license every year, you can maintain regulatory compliance.
Essential Tips For Expats Willing to Relocate With a Business License
Here are some additional tips for businesses that wish to relocate effortlessly to Dubai –
Engage with Business Consultants: Seek expert advice from business consultants to streamline your relocation process. Companies like Xpert Advisory have been in the industry for years, making company formation in the UAE and other GCC regions hassle-free. Speak to our consultants to accelerate license approval and set up a company at the earliest.
Understanding Legal and Cultural Norms: You must respect the UAE’s business etiquette, culture, and sentiments of citizens.
Financial Planning: Make sure you plan your finances well enough to avoid any mishaps at the end. Your license cost, office rental costs, cost of living, visa fee, company formation fee, etc.
Stay Updated on Regulations: Another important point is staying up to date with the ongoing regulations and changes in the UAE region.
Final Takeaway
For both professionals and businesses, relocating to Dubai as an expatriate with a business license opens up a world of opportunity for the entire expat community. Dubai is the perfect place for new and growing businesses because of its business-friendly atmosphere, advantageous location, and alluring visa policies.
But success hinges on knowing the different kinds of licenses, work visas, regulatory requirements, immigration procedures, and cultural aspects of starting and running a business. Make sure you connect with an expert consultant specialising in relocation services in the UAE. You can begin your journey with Xpert Advisory and make your move to Dubai simpler and more confident.
FAQs
Is Rent Expensive In Dubai?
Generally yes. It has a high standard of living. Some stats say that it is ranked fourth for the amount spent on accommodation. Mainly, some areas like downtown Dubai might be costlier.
Is Dubai Tax Free?
Mostly, yes! It has zero income tax and very minimal corporate tax. This makes it an attractive destination to relocate and work in Dubai with a business.
How Much Does It Cost To Start a Business in Dubai?
The type of company activity you will engage in will determine the cost. We provide business setup services, such as creating a bank account with one of the most reputable banks in the United Arab Emirates, acquiring residence permits for you and your family, and obtaining business trade licenses. Generally, it starts from AED 12,000*.
